New private home sales defy property curbs with 16-month high

July’s sales of private homes hit a 16-month high despite the latest round of cooling measures implemented on July 6.

1,724 private homes sold in July

With 1,724 new private homes sold, the number of homes sold in July leaped by 2.6 times from the 654 units sold in June.

A year-on-year comparison also saw a 22% rise from the 1,112 units sold in July last year. July’s sales volume was the highest since March 2017 when 1,780 units were sold.

When the property curbs were first announced, some thought it was too soon to rein in the just-recovering market. Others were expecting the market to be hit hard by the new restrictions. But buyers were not deterred.

Part of the sales volume spike could also be attributed to the massive 2,239 units launched in July, and the rush to close deals before the measures kicked in.

New private home sales dominated by 3 projects

The highest number of units sold, 628, came from Riverfront Residences where the median price stood at $1,307 psf, the lowest among the 5 top sellers.

The other properties which sold above 40 units each were Daintree Residences and Affinity @ Serangoon. Average prices from the other developments all came in above $1,710 psf, aside from Affinity @ Serangoon which sold 45 units at a $1,496 psf median price.

Affinity at Serangoon

Are the repeated rounds of cooling measures losing their bite?

Buyers seem to be less affected by this new round of curbs as 40% of last month’s new private home sales came after the measures went into effect.

Industry analysts are expecting a moderation in sales figures for the rest of 2018, with demand softening in the months ahead as buyers try to feel their way around the new measures.